Barry Callebaut Ag · SIX:BARN
Barry Callebaut — H1 2022/23 Earnings Presentation
20 slides from Barry Callebaut's earnings presentation, Apr 5, 2023
Slide 1: Half-Year Results 2022/23
Half-Year Results 2022/23 Media & Analyst Conference April 5, 2023
Slide 2: Cautionary note
Cautionary note Certain statements in this presentation regarding the business of Barry Callebaut are of a forward-looking nature and are therefore based on management’s current assumptions about future developments. Such forward-looking statements are intended to be identified by words such as ‘bel
Slide 3: Agenda
AGENDA Half-Year Results 2022/23 • Highlights • Outlook • Financial Review Ben De Schryver, CFO • Questions & Answers Ben De Schryver, CFO 3 Half-Year Results 2022/23 Media and Analyst Conference
Slide 4: Highlights
HIGHLIGHTS Half-Year Results 2022/23 4 Half-Year Results 2022/23 Media and Analyst Conference
Slide 5: Strong profitability and progressive volume recovery
Highlights Half-Year Results 2022/23 Strong profitability and progressive volume recovery • Progressive volume recovery in second quarter (-0.5%), limiting volume decline to -2.9% in Half Year 2022/23 • Sales revenue of CHF 4.2 billion, up +7.9% in local currencies (+3.7% in CHF) • Strong operating
Slide 6: Improving volume in Chocolate in an overall declining market
Highlights Half-Year Results 2022/23 Improving volume in Chocolate in an overall declining market Cocoa Chocolate FY 2021/22 HY 2022/23 +5.3% -2.9% +8.9% +6.0% +8.5% +1.9% +6.5% +2.5% +9.6% +10.2% +7.5% -0.3% -2.6% +2.6% -0.1% -1.2% Excluding -3.0% -5.8% -0.5% -3.6% Wieze impact -2.4% -1.4% -5.1% -2
Slide 7: Key growth drivers support volume improvement
Highlights Half-Year Results 2022/23 Key growth drivers support volume improvement % of total % volume growth Group volume vs. prior year 39% -1.0% Emerging (Q2 +2.1%) Markets Key growth drivers 35% Outsourcing, crucial to +1.4% Long-term continuously (Q2 +3.0%) Partnerships outperform the market 13
Slide 8: Outlook
OUTLOOK Half-Year Results 2022/23 8 Half-Year Results 2022/23 Media and Analyst Conference
Slide 9: Continued strong operating profitability, updated volume forecast for Full Year 2022/23
Outlook Continued strong operating profitability, updated volume forecast for Full Year 2022/23 “We are confident to deliver continued strong operating profit in the second half of the year. Due to the delayed volume growth, we now forecast the volume to be flat to modest for the Full Year 2022/23.
Slide 10: Consistent long-term strategy, new mid-term guidance focuses on accelerated value creation
Long-term Strategy Consistent long-term strategy, new mid-term guidance focuses on accelerated value creation Accelerated value New mid-term guidance creation Sustainable growth based on Key Growth Drivers • Continued growth in Emerging Markets 3-year period • Selective growth in Outsourcing 2023/24
Slide 11: Financial Review
FINANCIAL REVIEW Half-Year Results 2022/23 11 Half-Year Results 2022/23 Media and Analyst Conference
Slide 12: Volume picked up in Region EMEA and Global Cocoa
Financial review – Key performance indicators by Region Volume picked up in Region EMEA and Global Cocoa. Strong profitability in Regions EMEA, Americas and Global Cocoa Group Sales volume: 1,130,742 tonnes Volume EBIT growth growth Market1 in LC, recurring2 EMEA -3.7% -3.2% +10.3% In tonnes % of to
Slide 13: Gross profit increase supported by strong mix and positive Cocoa contribution
Financial review - Gross profit Gross profit increase supported by strong mix and positive Cocoa contribution In CHF million +11.4% 17 675 70 664 -11 606 -18 Gross profit Volume Mix Cocoa Gross profit FX Gross profit HY 2021/22 HY 2022/23, HY 2022/23 in LC 13 Half-Year Results 2022/23 Media and Anal
Slide 14: Cocoa combined ratio and raw material price development
Financial review Cocoa combined ratio and raw material price development European Combined Ratio - 6-month forward ratio Raw material price changes on average for the period HY 2022/23 4.50 180% 4.00 160% +83.4% 3.50 Combined 140% ratio 3.5x +11.3% 3.00 120% +5.3% 2.50 100% Butter ratio -6.1% 2.00 8
Slide 15: Strong Operating profit (EBIT) recurring, up +11% in local currencies
Financial review - EBIT bridge Strong Operating profit (EBIT) recurring, up +11% in local currencies In CHF million +11.0% 353 348 69 -34 -5 331 318 -13 EBIT Tax Credit EBIT HY Gross Profit SG&A, EBIT HY FX EBIT HY HY 2021/22 Brazil 2021/22 Others 2022/23, 2022/23 reported recurring reported, report
Slide 16: Net profit recurring up +10.4% in local currencies
Financial review - EBITDA to Net profit bridge Net profit recurring up +10.4% in local currencies, thanks to strong Operating profit (EBIT) In CHF million 467 ETR HY 2022/23: 18.7% HY 2021/22: 17.3% 348 (recurring 17.7%) -119 +10.2% (PY -116) -60 234 0 234 212 (PY -59) -54 (PY -47) EBITDA Dep. & EBI
Slide 17: Solid cash generation despite higher working capital
Financial review - Free cash flow Solid cash generation despite higher working capital In CHF million +7.7% -249 467 (PY -95) 434 -88 (PY -68) -96 (PY -104) 72 -259 39 (PY +167) (PY -300) -187 (PY -133) EBITDA EBITDA Change in Interest CAPEX Others FCF RMI Beans FCF recurring recurring Working & Inc
Slide 18: Adjusted Net debt further reduced
Financial Review – Net debt Adjusted Net debt further reduced In CHF million 188 41 1,581 154 1,199 -193 561 368 -1,213 Net debt Dividends Free FX/Others Net debt Adjustments Adjusted Adjusted Aug’22 & Treasury cash flow Feb’23 for beans Net debt Net debt shares (RMI) Feb’23 Feb’22 18 Half-Year Resu
Slide 19: Strong Balance sheet
Financial review - Key figures Strong Balance sheet (in CHF million) Feb’23 Aug’22 Feb’22 Net working capital 1,699 1,293 1,599 Non-current assets 2,972 3,002 2,934 Total assets 8,185 7,761 7,428 Net debt 1,581 1,199 1,594 Adj. Net debt1 368 350 561 Shareholders’ equity 2,896 2,902 2,696 ROIC report
Slide 20: Questions & Answers
Questions & Answers Ben De Schryver CFO 20 Half-Year Results 2022/23 Media and Analyst Conference